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Qualcomm will not stop shipping chips to Apple despite US$1 billion lawsuit

By Koh Wanzi - on 24 Jan 2017, 11:28am

Qualcomm will not stop shipping chips to Apple despite US$1 billion lawsuit

Qualcomm isn’t sitting quietly while Apple sues it for US$1 billion, but it doesn’t intend to tank its business and stop shipping chips for the iPhone either.

Last Friday, Apple served Qualcomm with a US$1 billion lawsuit, hot on the heels of the US Federal Trade Commission (FTC) antitrust complaint that Qualcomm was, among other things, strongarming manufacturers into using its modem technology.

Qualcomm then hit back with a fiery statement claiming that Apple’s claims were “baseless”. The below is from Don Rosenberg, Qualcomm’s EVP and General Counsel:

“Apple has intentionally mischaracterized our agreements and negotiations, as well as the enormity and value of the technology we have invented, contributed and shared with all mobile device makers through our licensing program. Apple has been actively encouraging regulatory attacks on Qualcomm’s business in various jurisdictions around the world, as reflected in the recent KFTC decision and FTC complaint, by misrepresenting facts and withholding information. We welcome the opportunity to have these meritless claims heard in court where we will be entitled to full discovery of Apple’s practices and a robust examination of the merits.”

According to Recode, sources close to Qualcomm also say the company is considering filing a countersuit in response.

Still, Qualcomm won’t stop supplying modem chips to Apple. The iPhone maker has reportedly had an exclusivity deal with Qualcomm over the past several years, where it would use only Qualcomm modems in exchange for a waiver on excessive patent fees.

However, Apple began using modem chips from Intel in the iPhone 7, in addition to chips from Qualcomm.

Source: Recode